Project Debsk

Location:

Poland

Project number:

51316

Business sector:

Energy

Notice type:

Private

Approval date:

27 May 2020

Status:

Concept Reviewed

PSD disclosed:

25 Mar 2020

Project Description

Provision of a senior long-term loan to finance the development, construction and operation of the 121 MW Debsk wind farm in northern Poland (the "project"). The project has been developed by Polenergia Farma Wiatrowa 3 Sp. z o.o. ("Developer"). Construction works are expected to be completed in 2021.

The loan is to be made available to Polenergia Farma Wiatrowa 3 Sp. z o. o. (the "borrower"), established to develop, construct and operate the Debsk wind farm. The borrower is owned by Polenergia S.A. (the "sponsor").

Project Objectives

The project will contribute to climate mitigation by increasing the share of renewable energy generation in Poland and add 121 MW wind generation capacity to the national energy system.

Transition Impact

The project targets the Green TI Quality through the addition of 121MW of renewable capacity to the Polish energy system. This capacity will displace coal-fired plants in the generation mix with expected significant CO2 emission savings, currently estimated at around 250 thousand of TCO2 per annum (to be verified at the due diligence stage).

Client Information

POLENERGIA FARMA WIATROWA 3 SP ZOO

The Borrower is a private company incorporated in Poland, established with the sole purpose of constructing and operating the Debsk wind farm.

EBRD Finance Summary

PLN 181,760,000.00

Provision of a long-term financing denominated in Polish Zloty. EBRD is expected to provide debt alongside commercial co-financiers, while equity necessary for the Project is expected to be provided by the Sponsor.

Total Project Cost

Confidential

Environmental and Social Summary

Categorised A (2014 ESD). The project is the development of a greenfield windfarm of 121MWe capacity in central Poland (Mazovian Voivodship) by POLENERGIA consortium. This will comprise 55 wind turbine generators (WTGs) with individual turbine capacity of 2.2 MWe, with medium voltage underground power lines, internal roads, manoeuvring yard and substation with high-voltage  underground power transmission lines. The project has been approved by relevant Competent Authorities in 2011, following an EIA procedure with public engagement. Construction permit was received in 2016 (subsequently extended in 2018). Initially 68 WTGs were planned, following further reviews and taking into consideration capacity limitations as well as impacts on birds and bats final number of WTGs was reduced to 55. The developer has reached long term agreements for the land lease through voluntary negotiations with the land owners. The Project will not be associated with resettlement or livelihood loss and is fully compliant with the local development plans.

The Bank has a long term relations with the Sponsor who has been fully implementing a corporate ESAP first agreed in 2013 and updated in 2016. As part of the implementation of the ESAP the Company has strengthened its EHS management system inclusive of management of contractors and on site H&S. An independent ESDD was undertaken, which confirmed that the Project is complaint with national legislation and the Bank's PRs and appropriate EIA process was undertaken in compliance with the EU EIA Directive. The Bank's ESDD included a Supplementary E&S Assessment to updated the studies and addressed among others: shadow flicker effect assessment, ice/blade throw risk, impacts on transportation routes, updated baseline biodiversity surveys for birds and bats, updated noise modelling and cumulative impact assessment with nearby existing and planned developments. In addition to Supplementary E&S Analysis Report, the Stakeholder Engagement Plan (SEP), Non-Technical Summary (NTS) and Environmental and Social Action Plan (ESAP) have been updated and developed for the project and disclosed in line with best practice.

The project location complies with two Commune Development Master Plans and three Local Zoning Plans, two for Zuromin and one for Kuczbork-Osada communes. Currently the area is used for agricultural purposes and it is surrounded with arable fields, forested areas or meadows. The area of the investment is located outside Natura 2000 areas or other strictly protected areas and not located close to sensitive receptors. Independent ornithologists have confirmed that the areas is not sensitive to birds and for instance is not an attractive feeding grounds, migration route or regular passages to feeding grounds or roosting places. The nearest Nature 2000 site is a birds' special protection zone 'Dolina Wkry i Mlawki' (PLB140008) located approximately 1.0 km to the west of the nearest WTG. The ESDD confirmed that the Project will not have an impact on this or other protected areas. Prior to obtaining a development permit from the Competent Authorities the Sponsor undertook an assessment of alternative location and layout of the wind turbines.

As result the final layout excludes the most sensitive areas, including from avifauna perspective (one wind turbine was moved and another two will not be built). Bats were identified mainly along local roads, particularly between Zielona and Kuczbork villages. Taking into account the status of protection, all these are included in a group with low risk of quantity change and therefore with no needs of undertaking significant conservations measures. The 2019 additional survey confirmed that the character of the wind farm terrain has not changed and that the area attractiveness for birds and bats has remained the same as in the previous investigations. Results of birds and bats observations from 2019 confirmed conclusions of the monitoring undertaken in the past. The ESDD has confirmed the that the Project is compliant with PR6. The Environmental Decision includes a number of requirements, such as post construction monitoring of birds for 5 years, which have been carried through into the ESAP. The Sponsor will also undertake additional monitoring bats and undertake carcass surveys. The high-voltage underground power line (PTL) will traverse the 'Dolina Wkry i Mlawki' Natura 2000 site. This has been approved with the Competent Authorities. The developer has undertaken detailed biodiversity inventory of the route and assessed potential impacts

In line with EU and best practices, and mitigation measures for construction period was developed. This includes supervision of all works by an ecologist, works to be undertaken outside of breeding season, groundwater protection measures, a set of amphibians and reptiles protective measures, which are reflected in the ESAP. Project impacts relating to noise, electromagnetic frequency and shadow flicker effect were analysed as well as cumulative impacts with other investments in the area. Detailed analysis of the ice or blade throw risk indicated that some local roads in the vicinity of the wind farm are potentially within the throw range. In order to mitigate the risk of Ice/blade throw, the Company will develop an Ice Throw Mitigation Plan which will address a need for safe operation of WTGs which may affect some roads.

The ESAP developed for the project transposes specific requirements stated in the Environmental Permit, requires the Sponsor to develop Traffic Management Plan, Throw Mitigation Plan, implement visual impact mitigation measures, undertake stakeholder engagement and implement a grievance mechanism in accordance with the Stakeholder Engagement Plan, and conduct and report on post construction noise, birds and bats monitoring. The full disclosure package was made available in the local authorities' offices in the two affected communes and information about accessing it has been provided through local press and media, the documents were in addition disclosed on Company's website and comments are expected within 60 days (Polish: https://www.polenergia.pl/pol/pl/strona/%5Btitle-raw%5D-16 and English: https:// www.polenergia.pl/pol/en/page/%5Btitle-raw%5D-7)

The Bank will monitor the project through the review of the Annual Reports on ESAP implementation as well as site visits as required.

There is an ESIA available for this project.

Technical Cooperation and Grant Financing

None

Company Contact Information

Lukasz Golaszewski
lukasz.golaszewski@polenergia.pl
tel: +48 22 522 39 00
www.polenergia.pl
Polenergia SA ul. Krucza 24/26 00-526 Warszawa

PSD last updated

25 Mar 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Project Complaint Mechanism (PCM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g., through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s accountability mechanism.

The accountability mechanism independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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